Some bitcoin holders are moving coins onto exchanges. This on-chain flow is the opposite of the large withdrawals seen after FTX’s collapse in late 2022. Security issues in the crypto market often push investors in predictable directions. For instance, following the collapse of the FTX exchange in November 2022, investors rushed to withdraw large volumes of coins from centralized platforms and move them into self-custody solutions, including hardware wallets and personal devices. Now they are doing the opposite by moving coins to exchanges, as the ongoing multi‑million‑dollar Coldcard hardware‑wallet incident, which began Friday, has raised fresh questions about the safety of self‑custody. "Daily exchange deposits of Bitcoin transfers < 10 BTC spiked yesterday [Friday] to 7.3K BTC, the highest since February 6. Could be related to the coldcard hack, as people move the…

Coldcard, the Bitcoin‑only hardware wallet made by Canadian firm Coinkite, is facing one of its biggest security incidents after a firmware bug quietly weakened how some devices generate seed phrases. The thefts began on Friday, July 30, and have continued in waves since. On‑chain analysts have tracked multiple exploits, with losses now estimated at 1,000–1,300 BTC (roughly $70–$90 million) across more than 1,000 addresses. The largest bursts moved hundreds of BTC in under an hour, and researchers say the attacks may be ongoing as of this writing. Attackers exploited a flaw dating back to March 2021, causing some Coldcard units to fall back on a predictable software random number generator instead of the device’s hardware RNG when creating new wallets. That reduced the randomness (entropy) in the seed, making it possible for an attacker to reconstruct likely seed phra…